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Read the authorised range
Check the permitted or required offerings, customer restrictions and the franchisor’s rights to change the range. A broad category such as facilities services can leave the actual tasks unclear.
A cleaning offer may not include mechanical work
If an operator wants to add mechanical maintenance, first compare those tasks with the agreement’s service range and customer conditions. Then check the separate qualifications or government permissions for the actual work and location.
The brand’s approval does not supply those qualifications. A government qualification does not by itself expand the private agreement either. Keep revenue from an unresolved service identified as an assumption.
Scope
- This explains the selected federal disclosure item. State and territorial requirements and the terms of the particular offer remain separate.
Next step
Confirm the actual service and customer permissions before treating the added work as part of the operator’s offer.
Sources & review notes
Federal Franchise Rule
FTC overview · Compliance Guide · Guide PDF · Current regulation
Federal Trade Commission
Passage, dates and research notes
primary · Item 16: Restrictions on what may be sold
Disclose any franchisor-imposed restrictions or conditions on the goods or services
Current substantive item read in full from current eCFR. This guide explains selected management implications; it is not a substitute for all prescribed disclosure text.
Federal Trade Commission
Passage, dates and research notes
primary · section-436.6
Respond fully to each disclosure Item.
Current eCFR displayed through 2026-11-09; eCFR is authoritative but not the official legal edition.
Detailed rule records (1)
Item 16 describes restrictions on goods or services, customer access, required offerings and rights to change the authorised range. A successful home-market bundle may not align with U.S. procurement or sector permissions. Do not assume a brand license authorizes regulated work.
16 CFR §436.5(p): FDD Item 16Keep this reading in your learning library.
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